Bitcoin has gained popularity and attention across the globe and has established itself as the largest cryptocurrency. All of these merits can be credited to a variety of factors and those are topics for some other day.
However, in recent news, we’re here to see how Xi Jinping’s remark caused this booming cryptocurrency to reach another great price point recently. On October 25, the President of China was noted saying “this opportunity is meant to be embraced”. With more advancements being made in the direction of Blockchain technology, the present Bitcoin scene presents a favorable picture.
Undoubtedly, it is China’s place as one of the world’s greatest economies that gives it such an irrefutable and deciding position. Just a remark by the leader of a powerful economy was all it took to coax the cryptocurrency to hit new highs. A recorded 30% high was noted recently, and it can easily be attributed to China’s interest in the virtual currency.
What does this mean for investors?
Understanding what this situation brings for investors is easy if one has a comprehensive understanding of Bitcoin and Blockchain. Blockchain can easily be seen as a ledger system that deals with the creation, distribution, and trade of Bitcoin. An important thing to note is its “decentralized” nature. This means that the growth and opportunities for Bitcoin and Blockchain are interconnected, and the expansion of one is certainly beneficial to the other.
Amidst the ongoing trade war, Bitcoin has presented another even ground for an all-new battle. At least, this is what most analysts and experts believe in. At the moment, the central area of focus remains FinTech. This comes after long days of dwelling on technology, spyware, patent infringement cases, agriculture, and so many other domains.
After having reached a $10,000 high by October end, the cryptocurrency has stepped down a little. Its most recent price points were recorded at around $9,300 during trading sessions. Nevertheless, even this presents at least a 25% rise in less than a week. To know more click here.
Takeaways from the recent buzz
The recent pattern of things hints towards China’s intention of decisive initiative when it comes to Blockchain development. The country wishes to establish leadership in the domain, and this seems probable seeing its current economic standing. However, the noted exponential rise is not likely to stay for long.
Before the comments from China’s leader poured in, Facebook’s CEO displayed signs of concern by stating China’s plans of potential dominance in the world of Bitcoin and Blockchain. All of this doesn’t come as a shock as we’ve known Facebook’s Libra fever (another cryptocurrency under development) to exist for some time now.
Why is there a need to speculate?
The need for speculation comes out of China’s already strong position. Being the world tech leader and Blockchain enthusiast, it might well be on the path to seize the thunder on this front. China’s interest in the world of cryptocurrency can be seen through its famous companies, investments, and patents. That being said, the country also sees this development initiative as a matter of “National priority”.
This comes along with a hint of the Chinese government trying to develop a digital currency. The People’s Bank of China has been suggesting a virtual clone of their fiat currency (yuan). More information hasn’t come to light on this front, but we do look forward to further developments.
The comments of the Chinese President led to a rise in share prices of more than 60 tech companies that are based in China. Bloomberg reports suggest the index closing 2.7% lower last Tuesday following the Shenzhen Exchange. There has also been a buzz around companies being asked to give a clear report on involvement with Blockchain if their share prices surged by more than ten percent. The newspaper believes that despite a new and welcoming future, rationality being exercised is very important.
There is no doubt about China’s constant involvement with Bitcoin. This can be traced to mining, trading, and the development of suitable platforms for exchange. The country has previously put forward the idea of electricity conservation and Bitcoin, both linked for good in the same bracket.
However, decentralized virtual currencies certainly come with their weaknesses. They can easily remain hidden from the common eye while they pile on as secret assets. So, a developmental initiative around Blockchain in China is likely to introduce tight security measures to make sure the domestic markets cannot exploit the currency.